Berlin landlords have until the end of February to request a review of their property's location rating in the rent index. That is according to the Senate Administration for Urban Development. Tenants can also submit requests. The applications will feed into the preparation of the new qualified rent index expected for 2017.
What the location rating means for rent
The location rating is one of the central factors in determining the comparable local rent. Berlin's rent index distinguishes between simple, average, and good locations, based on criteria such as building condition, residential environment, infrastructure, and noise levels. For landlords, the classification directly matters: it determines the permissible rent at re-letting or rent increases. An outdated classification can mean financial disadvantages.
How to apply
Anyone submitting an application must explain why the current classification from the 2015 rent index no longer applies. Valid arguments include: renovations in the surrounding area, new parks, improved transport connections. In boroughs like Neukoelln or parts of Friedrichshain-Kreuzberg, the environment has changed considerably in recent years. Documenting these changes strengthens the application.
Who decides?
The applications are reviewed by the Rent Index Working Group, which consists of representatives from tenant and landlord associations, the Senate Administration, and the commissioned research institute. The results feed directly into the data collection for the upcoming rent index.
The 2017 rent index
Berlin's rent index is updated every two years. The current one dates from 2015. The review phase now underway prepares the 2017 rent index, which will then serve as the basis for rent levels in the capital for another two years. Disputes between tenants and landlords over the correct rent level still occur regularly. But the market data and the concrete figures from the rent index provide a solid negotiation basis for both sides.
